Buy Rental Property Or Buy/Flip

Member since 2020 · 5 posts · 0 votes

Anybody In The Buffalo,NY Area or Surrounding Areas Experienced In Buying Multi Unit Properties And Renting Them Out And/Or Buying/Flipping Homes? Looking For Some Direction

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Evan Polaski

Cincinnati, OH · Member since 2020 · 4k+ posts · 3k+ votes

@Umair Khan I am not in Buffalo, but have experience in both multifamily rentals and fix and flip single families. Is there something I can help with?

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Evan Polaski
Cincinnati, OH · Member since 2020 · 4k+ posts · 3k+ votes
6y
@Umair Khan I am not in Buffalo, but have experience in both multifamily rentals and fix and flip single families. Is there something I can help with?
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Umair Khan
OP
Member since 2020 · 5 posts · 0 votes
6y
@Evan Polaski
Thank You For Responding, After A Little Bit Of Discussion, It Seems like I may Want To Look Into Buy/Flip Because Of How Costly Property Maintainability Can Be...Still Not Counting It Out but I’ve Heard A Little of both sides, still indecisive, and so I’m looking for some direction
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Evan Polaski
Cincinnati, OH · Member since 2020 · 4k+ posts · 3k+ votes
6y
@Umair Khan This is something that can be very personal, based on your goals. I do some of both. The fix and flips help cover living costs, as well as reinvestment in rentals. The rentals are more of a retirement plan, for me. The goal is to let that balance grow, and buy another one, repeat.
Once you have a rental, you generally have income forever. (Of course there will be fixes and vacancies, etc)
Fix and flips, you are constantly having to hunt for a deal. And I feel like the renovation process is very stressful. There are lots of expensive mistakes that can be made (collapsed sewer pipes may not be easily recognized without a scope, and can cost $20k in Cincinnati to replace) But, I can make on one flip what takes me 5+ years to net in rent.
If you have any other investments, this is similar to holding stocks vs bonds. Flips are a lot more volatile, so can make a lot of fast cash, and lots of people make a lot of money with them. Bonds are generally steady, smooth sailing, and there are lots of people who make a lot of money with them.
I know this doesn't directly answer your question, but I hope it at least helps get you started.
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Umair Khan
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Member since 2020 · 5 posts · 0 votes
6y
@Evan Polaski
That does answer it for the most part, thank you, as somebody new in the market looking to pay cash for my first property I was trying to see which option would fit the best, I’m assuming a buy/flip because I can quickly have access to more cash to eventually expand my profolio i.e. rental property eventually
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Matthew Irish-JonesBusiness Member
Real Estate Agent · Buffalo, NY · Member since 2017 · 2k+ posts · 2k+ votes
6y
Originally posted by @Umair Khan:
Anybody In The Buffalo,NY Area or Surrounding Areas Experienced In Buying Multi Unit Properties And Renting Them Out And/Or Buying/Flipping Homes? Looking For Some Direction
Thanks

Hi Umair, I am experienced.. What info are you looking for?

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Matthew Irish-JonesBusiness Member
Real Estate Agent · Buffalo, NY · Member since 2017 · 2k+ posts · 2k+ votes
6y
Originally posted by @Evan Polaski:
@Umair Khan I am not in Buffalo, but have experience in both multifamily rentals and fix and flip single families. Is there something I can help with?

Sorry didn't see your second post.

1. Property is costly to maintain but, if you buy right your tenants pay for all of the maintenance. You should buy a property that has enough rent to cover all of the expenses. There are times when you will need to add Capital to upgrade, renovate, etc.. But you should have a CapEx number to account for that.
2. Flipping is a faster way to turn your money over but, it is also more risky in my opinion. Flipping takes a lot of experience with analyzing deals, ARV's and running a construction team. Or hiring a GC to run a construction team for you, which cuts into your margin.
It can certainly be done and many people do it but, there are a lot of moving parts that need to be accounted for before you jump in to a flip.
Both of these options can be great investments and can be horrible if you don't do your due diligence and surround yourself with good people.
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Umair Khan
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Member since 2020 · 5 posts · 0 votes
6y
@Matthew Irish-Jones
Hey,
I’m new to the business I’ve you probably read in the thread, looking for some sort of factor to help me decide with my first investment what would be best route to go as far as wether to start with a quick flip or start off with a rental property. I’ve talked to a couple of people in the Niagara Falls area where property is cheap, that’s about it
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Matthew Irish-JonesBusiness Member
Real Estate Agent · Buffalo, NY · Member since 2017 · 2k+ posts · 2k+ votes
6y
Originally posted by @Umair Khan:
@Matthew Irish-Jones
Hey,
I’m new to the business I’ve you probably read in the thread, looking for some sort of factor to help me decide with my first investment what would be best route to go as far as wether to start with a quick flip or start off with a rental property. I’ve talked to a couple of people in the Niagara Falls area where property is cheap, that’s about it

My personal opinion would be to go with the safest investment possible since you are inexperienced. I am no guru but, my advice is you can lose a lot of money in RE investing very easily.
There are lots of cheap houses in NF, it is also a high risk market. Cheap houses do not equal inexpensive houses. There are houses that you will lose money on if they are given to you for free. The sale price of the house does not determine what it going to cost you.

We invest, manage, and buy and sell there, I would definitely not recommend this area for your first investment.  It takes a lot of business systems, knowledge or tenant law, and work with local municipalities to make investing in an area like this work.  The higher the returns = the higher the risk.. and generally speaking the more full proof business systems you need.
Same thing with flipping, more risk in my opinion, especially for a first timer.
If I were you I would consider house hacking, an FHA loan, or finding a nice safe investment. Something that needs a little work but not much, painting and carpets perhaps. Or, better yet, find something that cash flows from day one with tenants in place on leases. Since it is a competitive market you may have to take less of a return than savvy investors but, you will still be earning a return and you will have mitigated your risk.
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Khaled Morad
Lender · Tampa, FL · Member since 2018 · 422 posts · 210 votes
6y
Umair, I’m in the buffalo area and have a few doubles. I’ve never gotten into fix and flip but was always interested in partnering for that. I’ve had good success renting through stringent screening process and providing a good product.

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Umair Khan
OP
Member since 2020 · 5 posts · 0 votes
6y
@Matthew Irish-Jones
Thank You For the insight, I was trying to find deals that maybe not listed On the MLS but wouldn't mind it if it came down to it. I am looking to pay straight cash, the mortgage cost isn't really a deciding factor for me at the moment. Any recommendations for maybe what area to start looking? at because I am ready but of course don't want to rush myself into a bad deal
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